Your Guide to Cash Advance Scams

Anelle Valdes
a person’s hand is coming out of a laptop computer to steal a wallet out of someone’s back pocket

Sometimes, it’s hard to make ends meet. Sometimes, payday just can’t come soon enough, and things start to pile up head-high, and then some. Cash advances and payday loans provide a viable option for many individuals in our community. But, cash advance scams have become one of the hazards of today’s economy; popup stores are so prevalent, and they all share a similar look and feel. It can be hard to know which lenders are safe, and who is a bad bet. Here are some things to look out for so you can avoid a costly loan mistake.

Upfront fees

This is the red flag of all red flags when it comes to cash advances. A lender who demands a fee upfront is obviously not concerned with actually helping you. Why would you be looking for a cash advance if you have the cash to spare for a fee? Legitimate cash advance lenders know you have no money on hand, and they will not charge you any kind of fee until after you have received the advance.

“We don’t need your credit information to issue an advance”

This is a huge warning. While there are some legitimate lenders who will not check into your credit history, they are highly rare. Many scammers will use terms like “Bad Credit OK,” but the thing is, a conscientious lender will not seriously consider lending to you unless your credit is at least fair. While a legitimate lender may be willing to work with you even if you have poor credit, they will still examine your credit report thoroughly before they make the decision.

Phone offers

Cash advances are never offered over the phone. Most times, a person soliciting customers for an advance over the phone is a scammer. If the “company” calls you and offers you a cash advance, it is probably best to report the phone number and any company info to the local authorities and avoid providing your information to the person on the other end of the line.

Similar but not exactly the same name

Legitimate cash advance companies have registered business names, but that does not stop popup shops and scammers from imitating them. Like caterpillars that mimic other species in order to hide from predators, they hide behind similar color schemes, fonts, and wordings to lure you in. Familiarize yourself with legitimate companies, and do thorough research into any company that seems similar to the legitimate company.

Licensed or not

Cash advanced companies are legally required to hold licensure in the state in which they do business. You, as a customer, have a right to request their licensure information. If the company refuses to provide those credentials when asked, or you cannot find any license information on them through other channels, it is safe to say that they are not a legitimate business.

Thankfully, we here at Wise Loan are state-licensed in Texas, and we are ready to help you! Give us a call or check out our website today. You can even begin the application process online. It doesn’t get any easier to make ends meet than this!

The recommendations contained in this article are designed for informational purposes only.  Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.

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